The LatAm startup scene is really heating up, with venture capital flowing to innovative startups throughout South and Central America. But of all the countries benefitting from the investment, Mexico seems to be hottest, especially since its economy grew even faster than Brazil last year. With all that in mind, Mexican VC firm Alta Ventures just closed on a new, $70 million fund which will be devoted to investing in startups throughout the country.

With the close of the fund, it’s ready to start making more investments in Mexican startups. To do so, Alta Ventures has raised funds from a number of investors, including the International Finance Corporation (IFC), Fondo de Fondos (CMIC) and the Multilateral Investment Fund (MIF), which led the fund. Other investors include Dave McClure from 500 Startups (who’s got his own love affair with Mexico going on) and the Guadalajara Angel Investment Network (GAIN), among others.

The close of the fund comes as a number of VC and angel firms have taken a liking to the broader LatAm market, and Mexico in particular. There’s good reason for that: the Mexican economy is $1.15 trillion dollars and has been bolstered by a number of positive factors, including low country debt and political stability. Capital in Mexican startups continues to grow: According to the Latin America Venture Capital Association, Mexican startups raised $459 million in 22 deals in 2011, compared to $211 million through 19 deals in 2010.